Fly-E Group (FLYE) investor relations material

Executive summary

• Net revenues for the quarter ended June 30, 2026, declined 48.4% year-over-year to $2.7 million, primarily due to a significant reduction in retail store count and sales volume, partially offset by increased wholesale revenue from former stores now acting as wholesale customers and a strategic shift to a leaner, asset-light model.

• Net loss widened to $3.9 million from $2.0 million in the prior year period, with negative EBITDA of $3.5 million versus negative $1.3 million last year, driven by lower gross profit, increased general and administrative expenses, and higher expected credit losses.

• The company remains in default on a $5 million credit facility, faces ongoing litigation, and has received a Nasdaq deficiency notice, raising substantial doubt about its ability to continue as a going concern.

• Gross margin contracted to 10.9% from 42.4% due to a shift toward lower-margin wholesale and inventory clearance discounts.

• Wholesale revenue grew 46.9% year-over-year, partially offsetting the sharp decline in retail sales.

Financial highlights

• Net revenues: $2.7 million, down from $5.3 million year-over-year.

• Gross profit: $0.3 million (gross margin 10.9%), down from $2.3 million (42.4%) year-over-year.

• Net loss: $3.9 million, up from $2.0 million year-over-year.

• EBITDA: $(3.5) million, representing -126.3% of revenue.

• Cash at period end: $60,000; working capital: $8.1 million.

Outlook and guidance

• Management plans to seek additional equity and debt financing and financial support from related parties to address liquidity concerns.

• Management emphasized ongoing investments in technology and operational efficiency to support long-term growth, focusing on service quality, lean management, and enhancing user experience through upgraded systems and mobile applications.

• No specific revenue or earnings guidance provided; ongoing negotiations with lenders and uncertainty around litigation outcomes create material risks.